C.H. Robinson Worldwide Inc. Reports Operating Results (10-Q)

C.h. Robinson Worldwide, Inc. has a market cap of $8.72 billion; its shares were traded at around $54 with a P/E ratio of 19.6 and P/S ratio of 0.8. The dividend yield of C.h. Robinson Worldwide, Inc. stocks is 2.5%. C.h. Robinson Worldwide, Inc. had an annual average earning growth of 19% over the past 10 years. GuruFocus rated C.h. Robinson Worldwide, Inc. the business predictability rank of 4-star.

Highlight of Business Operations:

Total revenues and direct costs. Our consolidated total revenues increased 9.2 percent in the second quarter of 2012 compared to the second quarter of 2011. Total Transportation revenues increased 9.2 percent to $2.5 billion in the second quarter of 2012 from $2.3 billion in the second quarter of 2011. This increase was driven by higher volumes in most of our transportation services. Total purchased transportation services increased 10.9 percent in the second quarter of 2012 to $2.1 billion from $1.9 billion in the second quarter of 2011. This increase was due to higher volumes in most of our transportation services and higher transportation costs. Our Sourcing revenue increased 9.2 percent to $462.6 million in the second quarter of 2012. This increase was driven by higher volumes. Purchased products sourced for resale increased 8.7 percent in the second quarter of 2012 to $422.4 million from $388.6 million in the second quarter of 2011. Our Payment Services revenue increased 8.1 percent to $16.3 million in the second quarter of 2012 from $15.1 million in the second quarter of 2011. The increase was driven primarily by an increase in transactions.

Total revenues and direct costs. Our consolidated total revenues increased 8.6 percent for the six months ended June 30, 2012 compared to the six months ended June 30, 2011. Total Transportation revenues increased 9.2 percent to $4.7 billion in first six months of 2012 from $4.3 billion in the first six months of 2011. This increase was driven by higher volumes in all of our transportation services. Total purchased transportation services increased 10.4 percent in the six months ended June 30, 2012 to $3.9 billion from $3.5 billion in the six months ended June 30, 2011. These increases were driven by volume increases in all of our transportation modes, higher transportation rates, and higher fuel prices. Our Sourcing revenue increased 4.9 percent to $822.3 million in the six months ended June 30, 2012 from $783.6 million in the six months ended June 30, 2011. Purchased products sourced for resale increased 4.8 percent in the six months ended June 30, 2012 to $750.2 million from $715.6 million in the six months ended June 30, 2011. This increase is primarily due to volume growth. Our Payment Services revenue increased 8.1 percent to $31.9 million in the six months ended June 30, 2012 from $29.5 million in the six months ended June 30, 2011. The increase was driven by transaction growth.

For the six month period ended June 30, 2012 other selling, general, and administrative expenses increased 6.7 percent to $125.2 million from $117.3 million in 2011. Other selling, general, and administrative expenses as a percentage of net revenue increased to 14.9 percent in 2012 compared to 14.5 percent in 2011. This increase was driven primarily by an increase in travel expenses and software amortization, partially offset by a reduction in claims. As previously disclosed, we recorded a $5.9 million charge in the first quarter of 2011 due to a ruling by the Illinois Court of Appeals.

Cash flow from operating activities. We generated $110.0 million and $78.9 million of cash flow from operations during the six months ended June 30, 2012 and 2011. Accounts payable increased by $130.5 million from December 31, 2011 to June 30, 2012. The increase in payables was driven by growth in transaction volumes and the increased cost of capacity. Accounts receivable increased by $229.4 million from December 31, 2011 to June 30, 2012. This increase was driven by growth in total revenues and transaction volumes during the same period.

Cash used for investing activities. We used $24.8 million and $10.5 million of cash flow for investing activities during the six months ended June 30, 2012 and 2011. We used $25.0 million and $19.8 million of cash for capital expenditures, including the purchase and development of software, during the six months ended June 30, 2012 and 2011. In the second quarter of 2012, we used cash of $2.8 million for the investment in 500 additional intermodal containers. We plan to use another $3.2 million to complete the acquisition of these containers in the third quarter. We had $9.3 million of cash provided from net purchases, sales, and maturities of available-for-sale securities during the six months ended June 30, 2011.

Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.